Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $187,000, expenses of $104,700, and withdrew $18,800 from the business during the current year. The owner's capital account before closing had a balance of $299,000. The ending owner's capital balance after closing is: Multiple Choice $187,000 $82,300 $381,300 $362,500 $63,500
Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $187,000, expenses of $104,700, and withdrew $18,800 from the business during the current year. The owner's capital account before closing had a balance of $299,000. The ending owner's capital balance after closing is: Multiple Choice $187,000 $82,300 $381,300 $362,500 $63,500
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 2CPA: Jeffrey Dean, a Masters Degree candidate at North State Central University, was awarded a 15,000...
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Transcribed Image Text:Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of
$187,000, expenses of $104,700, and withdrew $18,800 from the business
during the current year. The owner's capital account before closing had a
balance of $299,000. The ending owner's capital balance after closing is:
Multiple Choice
$187,000
$82,300
$381,300
$362,500
$63,500
Expert Solution
Step 1
>Owner’s capital balance is the part of Equity.
>It contains the amount of amount invested by the owner and accumulated Net Income or Net Loss, as reduced by the amount of owner’s withdrawals.
>The Owner’s capital balance is increased by the amount of investment and net income, and is decreased by the amount of net loss and withdrawals.
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